I’ve been repairing computers since 2004. I often hear comments to the effect of “I don’t want to pay alot – after all, a new PC is like $300″. (It’s interesting that the amount hasn’t gone up or down by much in the last seven years.) In fact, researching for this article, I saw that Dell is offering its “everyday computing” desktop model starting at $299. Now, I like Dell’s desktops and I feel confident that Dell is offering a good computer at a good price. However, the naive comparison of repair cost to $300 misses a few important elements.
First, it must be said that the decision of whether to repair or buy new is always relevant and depends on many things, not least of which is the customer’s current level of satisfaction with the old computer. The cost of a given repair can and often does exceed the cost of a new computer, but the reverse is true just as often, if not more often.
What most people tend to overlook are the hidden costs of a new computer, not only in terms of dollars, but also in terms of time, labor, aggravation, and decreased comfort level. New shoes take some time until they’re broken in – so too a new computer.
Listed below are some of the hidden costs in buying a new computer.
(1) Product Search
Obviously, one wouldn’t want to buy the first $300 computer one sees. You may want something with similar (or more) capability than the computer you already have. In other words, you probably won’t be able to replace the computer than you bought four years ago at $850, today for $300. You could have bought a computer for $300 back then. Why did you go for the computer for $850? You should take into account the time you will spend online, at a store, or talking to a sales representative figuring out which computer you want – and there are always lots to choose from.
(2) Sticker Price
Don’t be surprised if, after you settle on the computer you plan to buy, the price turns out to be significantly higher than $300. You’ll probably want an upgrade from the minimum capability CPU and the minimum memory. You’ll probably want software which isn’t included in the baseline price (e.g. Microsoft Office, Quickbooks, anti-virus software). The Dell I looked at went from $300 to $650 after (just) upgrading CPU & memory, adding MS Office and anti-virus software. Don’t forget tax and/or shipping.
(3) Setup
Getting your new computer up and running the way you like it can take the better part of a day – if you know what you’re doing. Count on spending time (a) digging out, storing and/or disposing of the old computer, cables, etc, (b) unpacking the new computer, (c) plugging the new computer to power, keyboard, monitor, printer, network, etc, (d) the rigmarole in booting for the first time (e.g. “Preparing Desktop”, accepting EULAs, running Windows updates), (e) installing other software (e.g. Mozilla Firefox, PDF reader), (f) transferring important files from the old computer (e.g. documents, pictures, music), (g) making sure everything is functional (e.g. Internet, sound, etc.).
(4) Old Peripherals
Getting that old printer to work with your new computer may be automatic, impossible, or anywhere in between. These issues occasionally crop up, usually when least expected and least desired. You may need to buy special adapters, cables, batteries, or, in the worst case, a new peripheral device altogether.
(5) Unfamiliarity
Now that everything is all set up, things look a little different from what you’re used to – maybe a lot different. Where did the “My Computer” icon go? How do I turn on my wireless networking? How do I add page numbers to my Word document? Count on some lost time figuring things out – or doing things bass-ackwards until you get the hang of Microsoft’s new way of doing things.
Look at how the estimated costs add up:
[We're charging time at $40/hr. The median US salary is $40K/yr.
Then, each employee probably costs at least double their salary due to benefits, utilities, admin, etc. That works out to $40/hr.]
new PC – $300
extras – $350
product search – $80 (based on 2 hours @ $40/hr.)
setup time – $240 (based on 5 hours @ $40/hr.)
loss of efficiency – $960 (based on 85% efficiency during 1st month
during work @ 40/hr.)
———————————————
TOTAL – $1930
These number are gross estimates, but we can easily see that $300 is just the tip of the iceberg. Even so, sometimes it will definitely pay to buy a new computer. Imagine running at 90% efficiency because of a slow, old computer, month after month. The cost there will quickly dwarf even our $2K estimate.
Just because you don’t see the costs on a price sticker doesn’t mean they’re not there.